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Growth In Business Startups And High School Grads Going To College Propells Black Buying Power Toward $1.5 Trillion

Growth In Business Startups And High School Grads Going To College Propells Black Buying Power Toward $1.5 Trillion

African-American women’s consumer preferences and brand affinities are resonating across the U.S. mainstream, driving total Black spending power toward a record $1.5 trillion by 2021, according to African-American Women: Our Science, Her Magic, a Nielsen report released today. Self-made and self-reliant, the number of businesses majority-owned by Black women grew 67% between 2007 and 2012, more than all women combined. The latest U.S. Census figures show African-American women have majority ownership in more than 1.5 million businesses with over $42 billion in sales.

In Nielsen’s new Diverse Intelligence Series report, the global performance management company paints a portrait of Black women as trendsetters, brand loyalists and early adopters who care about projecting a positive self-image. They are playing an increasingly vital role in how all women see themselves and influencing mainstream culture across a number of areas, including fashion, beauty, television and music. Young, independent and 24.3 million strong, Black women comprise 14% of all U.S. women and 52% of all African-Americans. Relatively young with an average age of 35.1 years (versus 42.8 for non-Hispanic White women and 39.4 for all women), they have enjoyed steady growth in population, incomes and educational attainment. Sixty-four percent enroll in college right out of high school and 23% over age 25 have a bachelor’s degree or higher (up from 18% in 2005).

“Black women have strong life-affirming values that spill over into everything they do. The celebration of their power and beauty is reflected in what they buy, watch and listen to, and people outside their communities find it inspiring,” says Cheryl Grace, Senior Vice President of U.S. Strategic Community Alliances and Consumer Engagement, Nielsen. “Understanding how Black women’s values affect their buying decisions has long been a marketing necessity. Now, marketers must also recognize the intercultural influence of Black women on the general market as an increasingly vital part of how all women see themselves, their families and the rest of the world.”

Highlights of African-American Women: Our Science, Her Magic include:

Independent and self-made

The African-American woman’s independent mindset is present in her growing confidence, self-awareness and rising income. Black women are not only redefining what it means to be a woman for themselves, but are at the vanguard of changing gender roles and unlimited possibilities for American women of all ages and races.

64% of Black women agree their goal is to make it to the top of their profession (95% higher than non-Hispanic White women).

58% agree that they don’t mind giving up their personal time for work (20% higher than non-Hispanic White women).

14% of Black women have annual incomes of $50,000 or higher (up from 9% in 2005).

Ages 35–49 have the highest income within the black female cohort.

For Black millennial women (18–34), 81% have never been married, up from 71% in 2005.

With an average household size of 2.47, 29% of total Black American households contain a married couple.

Social media and technology

Black women have embraced the social media movement #BlackGirlMagic, a term that describes a cross-platform gathering of empowered Black women who uplift each other and shine a light on the impressive accomplishments of Black women throughout the country. Especially adept at using technology and social media to trade opinions and offer recommendations, Black women (18+), more than any other demographic group, have taken social media and adopted it for higher purposes. Whether they are buying cars, jewelry, smartphones or beauty products, the advice, referrals and feedback they receive from friends and community play an important role in Black women’s purchases.

43% of Black women say they like to share their opinions about products and services by posting reviews and ratings online.

47% agree that people often come to them for advice before making a purchase.

Black Women over-index by 29% for spending 3–4 hours each day on social networking sites and by

86% for spending 5 or more hours each day on social networking sites.

Trendsetting consumerism and consumption

Projecting a positive image is a sign of Black women’s aspirations and growing empowerment. Part of what makes them trendsetters is their desire for change.

68% agree they seek out variety in their everyday life (27% higher than non-Hispanic White women).

Projecting a positive self-image

Projecting a positive image is a sign of Black women’s aspirations and growing empowerment. And a big part of that is being healthy, inside and out.

82% of Black women agree it is important to be well-groomed.

74% of Black women agree that they eat right.

68% of Black women agree they are content with their appearance.

Shaking things up, naturally

Going natural, or forgoing chemical treatments to straighten their hair, is another way Black women may choose to safeguard their health and environment, while embracing their curly hair as it grows naturally.

60% of Black women agree they buy natural products because they are concerned about the environment.

63% buy natural, citing concerns about their health and that of their family.

46% of Black women agree they often use natural or organic beauty products.

68% of Black women agree they are content with their self-image.

Television

Black women (18+) spend more time watching live TV, listening to the radio and using multimedia devices than total U.S. women. Empire on FOX was the most watched show during the 2016–2017 broadcast season among Black women 18+, followed by The New Edition Story (BET), Star (FOX), The Have and the Have Nots (OWN) and Love and Hip Hop Atlanta (VH-1)—rounding out the top 5 shows.

Environmental causes

Black women have joined the global movement toward ecological sustainability and see saving the planet through the lens of guaranteeing clean air, water and most importantly safety for their own families and communities.